Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $743 million, a 9% increase compared to Q3 2024, and operating income rose 21% to $86.5 million [5] - Consolidated adjusted EBITDA reached $111 million, the highest quarterly performance since Q4 2015 [4] - Free cash flow improved, generating $77 million after investments of $24.2 million, with an ending cash position of $506 million [5] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) revenue and operating income were flat, with an EBITDA margin of 36%. ROV revenue per day increased to $11,254 from $10,576, while fleet utilization was 65% [5][6] - Manufactured Products operating income doubled to $24.7 million with a 16% operating income margin on a 9% revenue increase. Order intake was $208 million, with a backlog of $568 million [8] - Offshore Projects Group (OPG) operating income increased 17% to $23.7 million on a 16% revenue increase, maintaining a 14% operating income margin [9] - AdTech operating income rose 36% to $16.6 million on a 27% revenue increase, with a slight improvement in operating income margin to 13% [9] Market Data and Key Metrics Changes - The company maintained a 60% share of the contracted floating rig market, with ROV contracts on 78 of 131 floating rigs [6] - The company anticipates a decrease in revenue for OPG in Q4 2025 due to the absence of large-scale international projects [10] Company Strategy and Development Direction - The company plans to continue share repurchases in 2026, with approximately 5.8 million shares remaining under the existing repurchase authorization [13] - The company sees growth opportunities in various markets, driven by long-term commodity prices and increasing demand for mobile robotics technologies [14] Management's Comments on Operating Environment and Future Outlook - Management expects revenue to decrease in Q4 2025, with consolidated EBITDA projected between $80 to $90 million [10] - For 2026, the company initiated consolidated EBITDA guidance in the range of $390 to $440 million, expecting significant growth in AdTech and stable activity levels across energy-focused businesses [12][13] Other Important Information - Alan Curtis, CFO, plans to retire on January 1, with Mike Sumrold introduced as the new Senior Vice President of Finance [15] Q&A Session Summary Question: Advantages of Ocean Intervention II for simultaneous autonomous survey operations - Management highlighted the efficiency of performing more tasks with fewer resources, reducing costs and time while improving data quality through simultaneous data gathering [18][19] Question: Market outlook for Subsea Robotics in Brazil - Management expressed optimism about the robust market in Brazil, with significant opportunities and an expectation of increasing market share [20][21][22] Question: Growth expectations for AdTech business - Management noted that AdTech is low in capital intensity and is expected to grow significantly, with increasing international opportunities due to rising defense spending [23][25] Question: Revenue expectations for manufactured products in Q4 - Management clarified that while revenue may decline, operating income is expected to increase due to improved pricing and backlog execution [32][34] Question: Cadence of AdTech growth in 2026 - Management indicated that growth in AdTech will ramp up throughout 2026, driven by new projects and increased contractor onboarding [35][36]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $743 million, a 9% increase compared to Q3 2024, and operating income rose 21% to $86.5 million [5] - Consolidated adjusted EBITDA reached $111 million, the highest quarterly performance since Q4 2015 [4] - Free cash flow improved, generating $77 million after investments of $24.2 million, with an ending cash position of $506 million [5] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) revenue and operating income were flat, with an EBITDA margin of 36%. ROV revenue per day increased to $11,254 from $10,576, despite a fleet utilization of 65% [5][6] - Manufactured products saw operating income of $24.7 million, with a 16% operating income margin, doubling on a 9% revenue increase [7] - Offshore Projects Group (OPG) operating income increased 17% to $23.7 million on a 16% revenue increase, with a flat operating income margin of 14% [8] - AdTech operating income increased by 36% to $16.6 million on a 27% revenue increase, with a slight improvement in operating income margin to 13% [9] Market Data and Key Metrics Changes - The company maintained a 60% share of the contracted floating rig market, with ROV contracts on 78 of the 131 floating rigs [6] - The backlog as of September 30, 2025, was $568 million, with a book-to-bill ratio of 0.82 for the trailing 12-month period [7] Company Strategy and Development Direction - The company plans to continue share repurchases in 2026, with approximately 5.8 million shares remaining under the existing repurchase authorization [13] - The focus remains on growth opportunities across all markets, driven by long-term commodity prices and increasing demand for mobile robotics technologies [14] Management's Comments on Operating Environment and Future Outlook - The company expects revenue to decrease in Q4 2025 due to lower international OPG projects, projecting consolidated EBITDA in the range of $80 to $90 million [10] - For 2026, the company initiated consolidated EBITDA guidance in the range of $390 to $440 million, anticipating significant growth in AdTech and stable activity levels across energy-focused businesses [12][13] Other Important Information - Alan Curtis, the CFO, plans to retire on January 1, transitioning to an advisory role, with Mike Sumrold introduced as the new Senior Vice President of Finance [16][17] Q&A Session Summary Question: Discussion on Ocean Intervention II capabilities - The company highlighted the advantages of simultaneous autonomous survey operations, emphasizing efficiency and improved data quality [19][20] Question: Market outlook for Subsea Robotics in Brazil - The market in Brazil is robust, with significant opportunities expected, and the company anticipates an increase in market share [21][22] Question: Growth of AdTech business and capital competition - The AdTech business is low capital intensity, allowing for significant scaling without heavy investment, with increasing international opportunities noted [23][26] Question: Revenue expectations for manufactured products in Q4 - The company clarified that while revenue may decline, the quality of earnings is expected to improve due to backlog execution and operational excellence [29][30] Question: Cadence of AdTech growth in 2026 - The company expects to ramp up revenue throughout 2026, driven by new large-scale projects and ongoing contractor onboarding [33][34]

Financial Data and Key Metrics Changes - The company reported a net income of $54.4 million, or $0.54 per share, for Q2 2025, with consolidated revenue increasing to $698 million, a 4% increase year-over-year [5][6] - Consolidated operating income rose by 31% to $79.2 million, and consolidated adjusted EBITDA grew by 20% to $103 million [6][20] - Free cash flow for the quarter was $46.9 million, with an ending cash position of $434 million and no borrowings under the secured revolving credit facility [6][7] Business Segment Performance - Subsea Robotics (SSR) saw operating income improve by 4% to $64.5 million, with revenue increasing approximately 2% and an EBITDA margin of 35% [8][9] - Manufactured Products generated operating income of $18.8 million, marking a 31% rise, with revenue growing by 4% to $145 million [10][11] - Offshore Projects Group (OPG) reported operating income of $21.7 million, with revenue increasing by 4% and operating income margin expanding to 15% [12][13] - Aerospace and Defense Technologies (AdTech) operating income increased by 125% to $16.3 million, with a 13% increase in revenue [15][17] Market Data and Key Metrics Changes - ROV revenue per day increased to $11,065, with fleet utilization at 67% [5][8] - The company maintained a 60% share of the contracted floating rig market with ROV contracts on 81 of the 136 floating rigs under contract [9] - The company anticipates continued tendering activity supportive of ROV utilization and pricing assumptions, particularly in decommissioning opportunities in Europe [9][10] Company Strategy and Industry Competition - The company remains positive about growth in both energy and aerospace and defense markets, with expectations for continued growth beyond 2025 [23] - The recent reconciliation bill is expected to positively impact all three AdTech business lines over the next five years, particularly in unmanned underwater vehicles [18][23] - The company is gearing up to increase capacity to serve the submarine maintenance and repair market due to anticipated funding increases [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain market share and improve operational results across segments [21][22] - The outlook for Q3 2025 includes expected increases in consolidated revenue and EBITDA, with projections for SSR and AdTech showing significant growth [19][20] - Management noted that visibility into future contracts has improved, particularly with larger international contracts [49] Other Important Information - Unallocated expenses for the quarter were $46.7 million, slightly higher than guidance [19] - The company has secured order commitments totaling approximately $100 million in the first weeks of Q3 2025 [11][32] Q&A Session Summary Question: Impact of offshore rig white space on business - Management acknowledged some impact but noted that pricing improvements have offset concerns, with expectations for ROV utilization to reach 70% by year-end [26][27] Question: Orders in the manufactured product segment - Management indicated that orders are expected to be flat year-over-year, with positive signals for 2026 [30][32] Question: ROV utilization outlook - Management stated that the lower utilization outlook relates to both vessel and rig support, with increased clarity on plans for Q4 [39][40] Question: Free cash flow visibility - Management highlighted that cash flow typically rebounds in Q3 and Q4, with significant amounts sitting in receivables [42][44] Question: OPG business visibility - Management confirmed improved visibility due to securing larger contracts, which stabilizes the business [48][49] Question: Potential impact of the reconciliation bill - Management discussed the positive implications for OTEC and other business lines, particularly in defense and space sectors [50][55]

Financial Data and Key Metrics Changes - The company reported a net income of $54.4 million, or $0.54 per share, for Q2 2025, with consolidated revenue increasing to $698 million, a 4% increase year-over-year [7] - Consolidated operating income rose by 31% to $79.2 million, and consolidated adjusted EBITDA grew by 20% to $103 million [7] - Free cash flow for the quarter was $46.9 million, with an ending cash position of $434 million and no borrowings under the secured revolving credit facility [7] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) saw operating income improve by 4% to $64.5 million, with revenue increasing approximately 2% and EBITDA margin expanding slightly to 35% [9] - Manufactured Products generated operating income of $18.8 million, marking a 31% rise over the previous year, with revenue growing by 4% to $145 million [11] - Offshore Projects Group (OPG) reported operating income of $21.7 million, with revenue increasing by 4% and operating income margin expanding to 15% [13] Market Data and Key Metrics Changes - ROV revenue per day increased to $11,065, with fleet utilization for the quarter at 67% [6][9] - The company maintained a 60% share of the contracted floating rig market with ROV contracts on 81 of the 136 floating rigs under contract [10] - The company anticipates continued tendering activity supportive of ROV utilization and pricing assumptions, particularly in decommissioning opportunities in Europe [10] Company Strategy and Development Direction - The company remains positive about growth in both energy and aerospace and defense markets, with expectations for continued growth beyond 2025 [23] - The company is focusing on integrating Global Design Innovation into its Integrity Management business and identifying pilot projects to demonstrate new capabilities [15] - The recent passage of the reconciliation bill is expected to positively impact all three AdTech business lines over the next five years [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of execution and resilience of the business, noting eight consecutive quarters of meeting or exceeding adjusted EBITDA guidance [4] - The company expects to see solid vessel utilization and activity levels for OPG based on current backlog and quotation activity [14] - Management indicated that while the macro environment is encouraging, they do not expect activity to reach the same level as Q4 2024 [15] Other Important Information - Unallocated expenses for the quarter were $46.7 million, slightly higher than guidance [19] - The company has secured order commitments totaling approximately $100 million in the first weeks of the quarter, supporting confidence in the second half forecast [12] Q&A Session Summary Question: Impact of offshore rig white space on business - Management acknowledged some impact but noted that pricing increases have offset concerns, with expectations for overall ROV utilization to reach 70% by year-end [27][28] Question: Orders in manufactured products segment - Management indicated that orders are expected to be more flattish year-over-year, with positive signals for subsea business and umbilicals [30][34] Question: ROV utilization outlook - Management stated that the lower utilization outlook relates to both vessel and rig support, with increased clarity on plans for the fourth quarter [40][41] Question: Free cash flow visibility - Management highlighted that cash generation typically rebounds in Q3 and Q4, with a good amount of cash sitting in receivables [43][44] Question: Visibility in OPG business - Management confirmed increased visibility due to securing larger international contracts, which provide a stable base for future work [48] Question: Impact of the reconciliation bill - Management discussed the positive effects on OTEC and other business lines, with expectations for increased funding and project activity in space and submarine maintenance [50][56]

Core Viewpoint - Nauticus Robotics, Inc. is progressing towards record-breaking revenue and technological milestones in 2025, with a focus on combining traditional ROV work with autonomous capabilities through the integration with SeaTrepid [1][3]. Company Developments - Nauticus ROVs completed projects for six different customers in the second quarter, supporting the wind industry along the U.S. East Coast and the energy sector along the U.S. Gulf Coast [2]. - The third quarter of 2025 will see the initiation of revenue generation from the Aquanaut® vehicle, marking a significant step in the company's deployment of its flagship underwater vehicle [2]. - The Aquanaut® vehicle is expected to execute projects at ultra deepwater depths of up to 2,200 meters by the end of summer 2025, which will be its first revenue-generating operation at these depths [4]. Market Position and Customer Engagement - The year-over-year reduction in customer concentration indicates strong growth in market adoption and diversification for Nauticus [3]. - Current and new customer discussions confirm market acceptance of Nauticus' combined offering of ROV and Aquanaut® vehicle, with customers eager to see the Aquanaut® in action [3]. - The second half of 2025 is anticipated to increase excitement and exposure for Nauticus' offerings, with promising discussions ongoing with customers [4]. Technological Innovation - Nauticus Robotics develops autonomous robots for ocean industries, utilizing sensors, artificial intelligence, and effective algorithms for perception and decision-making [6]. - The company is testing and certifying a new generation of vehicles aimed at reducing operational costs and improving data collection for subsea infrastructure maintenance [6]. - Nauticus' approach includes retrofitting traditional ROV operations and developing technology products for third-party vehicle platforms, enhancing operational efficiency and reducing environmental impact [6].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income of $56.1 million or $0.55 per share, a 26% year-over-year increase [11] - Consolidated revenue for Q4 2024 was $713 million, a 9% increase compared to the same period last year, with operating income rising 64% to $77.9 million [11][12] - Adjusted EBITDA for Q4 2024 reached $102 million, representing a 35% increase year-over-year [11][12] - For the full year 2024, consolidated revenue increased 10% to $2.7 billion, with operating income improving by 36% to $246 million [21][22] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) operating income for Q4 2024 was $63.5 million, a 26% increase year-over-year, with an EBITDA margin improvement to 36% from 32% [13][14] - Manufactured Products segment revenue for Q4 2024 was $143 million, an 8% increase year-over-year, but operating income margin declined to 3% due to reserves taken on a project [15][16] - Offshore Projects Group (OPG) achieved record revenue and operating income in Q4 2024, with operating income improving to $39.3 million and revenue increasing 14% to $184 million [17][18] - Integrity Management and Digital Solutions (IMDS) saw a decrease in operating income despite a revenue increase, primarily due to acquisition-related costs [18][19] Market Data and Key Metrics Changes - The company ended 2024 with a cash balance of $498 million and a free cash flow of $94.5 million [12][13] - The year-end backlog was $604 million, a decrease of $17 million compared to the previous year [16] - The book-to-bill ratio for 2024 was 0.7, down from 1.31 in 2023, indicating a slowdown in order intake [16] Company Strategy and Development Direction - The company is focused on leveraging market dynamics in 2025, with expectations for mid to high single-digit revenue growth across all segments [28][29] - Continued pricing progression and favorable project mix are expected to drive revenue growth [29][30] - The company is actively pursuing M&A opportunities, particularly in disruptive technologies, and has seen an increase in potential targets [87][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of defense-related markets and the overall outlook for 2025, despite potential geopolitical risks [27][28] - The forecast for 2025 includes expectations for EBITDA in the range of $380 million to $430 million, representing a 17% increase over 2024 [30][31] - The company anticipates generating positive free cash flow of $110 million in 2025, with capital expenditures projected between $130 million and $140 million [31][32] Other Important Information - The company achieved a 56% reduction in high potential incidents, with a total recordable incident rate of 0.29% for the year [9][10] - The acquisition of Global Design Innovation Limited (GDI) is expected to enhance the company's digital and software capabilities [8][10] Q&A Session Summary Question: Pricing increase in ROVs - Management indicated that the pricing increase in ROVs has been driven by both drilling support and vessel-based work, with expectations for continued upward pricing progression despite flat activity levels [46][49] Question: Guidance on orders and book-to-bill - Management did not provide specific guidance on orders or book-to-bill but noted a healthy sales pipeline [50][52] Question: ROV utilization assumptions - Management expects rig activity to remain flattish, with a focus on higher quality assets and increased market share in Brazil [58][61] Question: Update on outsourced manufacturing - Management expressed confidence in the quality of outsourced manufacturing and noted ongoing discussions with customers for larger volume orders [62][64] Question: Margin improvement in manufactured products - Management highlighted that margin improvement is driven by better pricing in backlog and operational efficiencies [67][69] Question: Strength in offshore projects - Management discussed the growth in light well intervention and rework of infrastructure as key drivers for OPG's performance [78][80] Question: Visibility in the vessel class ROV market - Management noted strong utilization in the vessel class and ongoing demand for ROVs in various projects [82][85] Question: M&A opportunities - Management indicated an increase in M&A opportunities and expressed excitement about potential targets that align with the company's strategic goals [87][89]